breaking news overnight, finally, a deal. >> congress passing a bill to avoid the most serious impacts of the fiscal cliff. the president speaking just before midnight. next year, new location. the students of sandy hook elementary head back to the classroom this week, with much being done to ease the transition. hannah is healing. returning to the air after being badly burned. what it took to get her ready for the rose parade. and no excuses. if you're headed to the gym this morning, keep an eye out for gertrude, still power walking and pedaling after 101 years.

good morning. i'm john muller, in for rob nelson. >> and i'm paula faris. it turns out the congress had a bungee cord when they took the country over the cliff. >> the house has ended a bitter deal over a tax deal. bringing the country back from the brink. >> tahman bradley joining us with the new developments from washington this morning. hi, tahman. >> reporter: all, paula and john. the country did technically go over the fiscal cliff. but congress has fixed the mess. what they passed is retroactive. so, 99% of americans will not see a change in their tax rate. they finally got it done. congress ended the long drama over the fiscal cliff with house republicans reluctantly passing the senate's bill. >> i will sign a law that raises taxes on the wealthiest 2% of americans, while preventing a middle-class tax hike that could send the economy back into the

recession. >> reporter: for a time, it aspeared the bill was headed for defeat. house republicans did not want to raise taxes without significant cuts in government spending. >> there's no spending cuts. we're adding $4 billion a day to the debt. we feel like the senate bill failed miserably. >> reporter: but in tend, house republicans decided not to drag out the fight any longer and risk taking the blame for massive tax hikes on nearly every american worker. >> what's the alternative? the alternative is $4 trillion in tax hikes that hit the american people, market uncertainty. >> reporter: the bill shields people earning less than $4 $400,000 a year. not to mention, the bill only delays large cuts to the pentagon and other government programs.

so, in march, we may see another round of fighting. president obama says he hopes congress can strike a deal with a little less drama. paula and john? >> don't count on it. >> let's hope so. round two of the spending cuts. what are the chances that republicans go along with raising the debt ceiling? i know they believe maybe they have a little leverage now? >> reporter: i feel like we've seen this movie before. republicans are going to have to vote for raising the debt ceiling. but they want deeper spending cuts and deficit reduction. and they'll probably get it. but it could be another ugly fight in two months. >> it's interesting that john boehner and paul ryan voted in favor yesterday, as well. interesting dynamic there. tahman bradley in washington. thank you, tahman. and new york lawmakers are furious this morning after the house ditched a vote on billions of dollars of aide for victims of hurricane sandy. house gop leaders decided to wait for the new session of congress before taking the vote.

new york republican peter king called it absolutely inexcusable. and democrat eliot engle says speaker john boehner should hang his head in shame. secretary of state hillary clinton, entering a fourth day in a new york city hospital where she is being treated for a blood clot. chelsea clinton has been at her mother's bedside. and tweeted, thank you for sending good thoughts to my mom's way. doctors have not given a date when clinton can leave the hospital or how soon she'll be able to resume her usual, hectic pace. and students from sandy hook elementary get ready to head back to class tomorrow for the first time since the shooting nearly three weeks ago. an open house scheduled today and therapy dogs are on their way from chicago to help ease the transition. we'll be live in newtown, coming up on "good morning america." in the week of the newtown

tragedy, one new jersey school district will have an armed police officer at every school beginning today. there's always been a cop on duty at marlboro high school. and one other officer at the marlboro middle school. an oil rig has run aground on the coast of alaska. the entire crew was evacuated safely before it washed up on the rocky shoreline. but the rig is carrying 150,000 gallons of diesel and other petroleum products. a man trying to save a dog was swept out to sea in northern california. waves were 20 feet high at the time of the accident. the man was hit behind by one of the giant waves and carried out immediately. his body was recovered after a three-hour search. and 2012 was likely the warmest year on record across the united states. and certain cities were really feeling the heat. preliminary data from the

national weather service found that at least 30 major cities have broken or tied their previous record last year. they include dallas, houston, detroit, st. louis and chicago. time, now, for the weather across the nation. light snow from the dakotas across the great lakes. showers and thunderstorms from southern texas to jacksonville, savannah and charleston. south carolina has the coldest morning in the northeast. >> new york and boston, doesn't even warm up to the freezing mark. mostly 20s from detroit to fargo. >> miami. coming up, the richest of the rich. new names topping a list of the world's billionaires. plus, apple's elves hard at work. signs of an all-new iphone after the start of the year. and espn's hannah storm after a barbecue explosion.

welcome back, everyone. wall street is ready for takeoff. the markets are expected to rally this morning after the late-night budget breakthrough in washington. the dow was up higher slightly on monday. the joy, don't need to be a debbie downer. probably going to be short-lived. other issues are also unresolved. chief among those is the debt ceiling. the government has hit the limit on borrowing. and a new impasse on extending that limit is likely. republicans say they will insist on new spending cuts first. president obama says congress has an obligation to raise the debt ceiling. and that is not negotiable.

just days after u.s. officials blame the popularity of apple devices for a rise in crime, there was a heist in paris. armed robbers hit the main apple store there after it closed. they got away with more than $1 million in apple product, such as the iphone 5. $1 million worth. but the iphone 5 is so last year, apparently. apple seems to be getting ready for this year. there's signs we could see another tim cook announcement this spring for an iphone 6. developers are seeing markers left behind by new devices left at apple headquarters. those markers say iphone 6. >> bigger, faster, stronger, everything. and poor warren buffett, no longer the third-rich et billionaire. the bloomberg billionaire inthe exsays amancia ortega has a net worth of $57.5 billion. second-richest is bill gates with $63 billion. and number one is mexican

telecommunications magnate carlos slim, with $75 billion. buffett falling to fourth. >> you are fifth on that list, right, paula? >> not that list. when we come back, a celebrity-chasing business turned deadly. a paparazzo in l.a. on the trial of justin bieber has been killed in an accident. why carrying a few extra pounds could be living a few more years. the intriguing benefits of being a little overweight. [ male announcer ] introducing doggie dentures.

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try our new southwestern mac and cheese with grilled chicken, served with soup or salad. chili's lunch combos. starting at 6 bucks. more life happens here. well, it's a new year's day tradition across the country. a superchilly dip in frigid waters. this was coney island, new york, yesterday, where members of the polar bear club and many others braved the freezing temperatures for a few moments of madness in the sea. slimmers that took the plunge

described it as cold and refreshing. but no thank you. i'll go in the summertime. now, for a look at morning road conditions. snow will make for a slippery commute from chicago to des moines. >> if you are flying, airport delays possible in new orleans, and minneapolis. a short list. back to the news. and president obama has headed back to hawaii now that the house has approved a fiscal deal. his holiday was cut short by the high-stakes capitol hill standoff. >> before leaving, the president made an unusual late-night statement in the white house press briefing room. he says he hopes the next stage of the spending debate can be done with less drama. i think that's a common sentiment in this country. let's look at the wake of the jerry sandusky scandal at penn state. the governor says he plans to

sue over the sanctions the ncaa slapped on the school. that includes a fine. politicians don't like taxpayer money going to other states. and a developing story from los angeles. a photographer taking pictures of justin bieber's ferrari has been killed in an accident. the car had been pulled over for a traffic stop. bieber was not inside at the time. the photographer was struck and killed by another car as he walked across a busy street after shooting the pictures. if you're working at this time of night, maybe you had one of those emergency drinks that promise to give consumers the mental and physical edge. but "the new york times" says there's little scientific evidence to back up the claims. caffeine is the only ingredient with proven benefits. and researchers say you can get the same boost from coffee. a major study finds a few extra pounds might be okay. people that were slightly

overweight were at less risk of dying than people average weight. the findings were true, only, for those slightly, that's the key word, slightly overweight. not obese. >> i feel better act my new year's resolution not to work out now. new year's day brought the welcome return of a familiar face to tv. our espn friend and colleague, hannah storm, was back on the air, hosting the rose parade, just three weeks after being badly burned when her backyard propane gas grill exploded. she later talked about what she had been through. >> i yelled inside to my 15-year-old daughter, who was in the kitchen, mommy's on fire. you have to call 911. i told her i was on fire. all teenagers, picks up her cell phone ands 911. there were flame marks on my neck. you could tell where the flames had been licking up on my neck. and i was very disfigured.

you know, without hair, eyelashes, eyebrows. it was a sight to behold, let me tell you. i spent an hour in hair and makeup this morning. i have on false eyelashes. this is all fake hair. when the makeup artist brushed an eyebrow on me, i almost stood up and kissed her this morning. it is a long, it is a hard road for burn victims. i was, by far, the most fortunate person in my burn unit. if the grill has been lit but the lighter did not ignite for a period of time, the chances are very good there's a lot of propane still sitting in the area. so, just turning it off and relighting your grill isn't sufficient. you have to wait for a long period of time for all of that propane to dissipate before you relight your grill. >> great information to pass along. we're happy to see she is on the road to recovery.

now, for sports highlights from espn. >> good morning. cole wright here with your espn update. the clippers looking to turn a seven-game winning streak into an eight-game winning streak. denver up eight. gallinari, yes. nuggets up at the break. javayle mcgee, they led by six. fourth and final. nuggets by 15. corey brewer to andre miller. 17-game winning streak over. neg ets go on to win this one, 92-78. football time. steve spurrier's gamecocks taking on michigan in the outback bowl. vincent smith, takes the handoff. blown up by clownie. clownie. the gamecocks, they would be in business. the next michigan drive after that unbelievable lick right

there. third and 13 for big blue. michigan up one after a missed two-point conversion. 1:23 left to go in the fourth. fourth and three for the gamecocks. connor shaw to sanders. that would be first down for south carolina. second and ten. dylan thompson, to bruce ellington. gamecocks, they go on to get the win in this one, 33-28. that would be your final. and that will do it for your espn news upda. until next time, i'm cole wright. >> until next time. there's always next year for michigan. >> what a hit. man. >> so blue. yeah. that was intense. my head hurt after that. all right. we can't forget the bcs bowls. >> the pasadena, the 99th granddaddy of them all, and wisconsin, losing their third-straight rose bowl.

the cardinal won 20-15. meantime in miami, it wasn't even close. florida state dominating northern illinois in the orange bowl with a highly-lopsided victory. 31-10. ouch. not good for the midwest, right? and sports photographers are known for having quick eyes and hands. what about fast feet? >> check out this camera man working a soccer match. without taking his hands off the camera -- >> you're kidding. >> casually kicking his foot behind his back, aiming the ball right where he wants it to go. sign him up. >> are the jets going to bring him in for a try-out now? >> you never know. >> not going to argue with you on that one. up next, "the pulse." and we'll tell you the staggering amount of money a single photo of kim kardashian's baby bump might fetch.

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it is time to check "the pulse." two days into the new year, one of the most buzzed-about times is kimmy, as in kim kardashian and kanye west with their baby on the way. >> now, kim has confirmed her pregnancy. there's no word her mom -- there is word that her mom, kris jenner, is shopping around pictures of her baby bump, to the highest bidder. >> the kardashian clan is looking to -- get ready for this. $300,000 for a baby bump magazine cover exclusive. 300 grand, i'm sure they will

donate that to charity. no pressure. >> no. it was the end of a winning game for iowa state basketball player anna prinze, when her boyfriend appeared on the court. >> you can see the puzzled look on her face. she's trying to figure out what's going on. but it's soon clear, her boyfriend surprised her with a proposal on center court. the crowd cheered as anna said, yes. >> was she going to say no? yeah, right. proof this morning that plenty of exercise can do a world of good. just ask gertrude. >> while most people her age are getting wheeled around, gertrude is hitting the gym at 101. she starts on the bike and moves to the treadmill. she's been exercising most of her life. >> listen to this. to stay young at heart, she likes to dance, meet new people and hit the bars. >> and maybe she meets new people and dances at the bars.

>> 101. >> and throwing a couple back. >> make it a double. for some of you, your local news is next. we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally. ally bank. your money needs an ally. hey hun, remember you only need a few sheets. hmph! [ female announcer ] charmin ultra soft is made with extra cushions that are soft and more absorbent. plus you can use four times less. charmin ultra soft. can be the worst part. my medicine alone doesn't always give me all the congestion relief i need to sleep. [ female announcer ] adding breathe right nasal strips can make all the difference.

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at petsmart®. updating the top stories. the house voted late last night on a fiscal cliff deal that prevents a steep tax hike for most americans. the measure goes to the president, who thanked congress for making an agreement. but house leaders scrapped the vote for aid for hurricane sandy, prompting hanger. and family members at sandy hook elementary getting a chance to see the new school before classes begin. the middle school has been renovated to accommodate the young students. thunderstorms from houston to north carolina and the carolinas. there will be bitter cold this morning here, in the northeast. and finally, this wednesday morning, a quick fix for when you had one or two or three or a whole lot too many.

way too many. >> whether it was celebrating the new year, or an occasional, you go out with your friends, it's familiar the aftermath. the hangover. you know what i'm talking about? >> we're working. we don't know what you're talking about. >> abc's linsey davis tells us how we might be able to beat the hangover. >> reporter: waking up to a nasty bout of nausea. battling a blinding headache. hopefully, nothing like what the guys in "the hangover" experienced. >> what the [ bleep ] happened am i missing a tooth? >> reporter: while no one argues excessive drinking can be harmful, some feel the only sure cure for a hangover is time. and then, there's dr. leonard grossman. >> once you have the hangover, you're done. there's four hours of your life that's just lost. >> reporter: he says he's created a way to prevent hangovers without vinegar, pickles or eggs.

it's called bytox. he says this patch is like being attached to an i.v., infusing vitamins in the bloodstream. >> alcohol is a diuretic. the kidneys go into overdrive. and you're washing out everything that's water-salable. >> reporter: he created the patch with alex flishmaker. he had to call dr. grossman for help. >> he administered an i.v. full of vitamins. and within minutes, i felt great. >> had at least 12 shots of tequila. >> the testing didn't typically apply. >> i was amazed how well i felt. >> reporter: but the authors in a british medical study found no convincing evidence that any remedies can cure a hangover. and dr. grossman doesn't dispute that. >> it's not a cure.